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Assume that the Spot rate (S) of the 6 points Canadian dollar (CAD) is US$0.70/CAD$, while the 180-day Forward Rate (FR) is US$0.71/CAD$ Requirements (answer

image text in transcribed Assume that the Spot rate (S) of the 6 points Canadian dollar (CAD) is US\$0.70/CAD\$, while the 180-day Forward Rate (FR) is US\$0.71/CAD\$ Requirements (answer in the same order requested and indicate each question's number): 1. Is the FR at premium or discount in relation to S ? Explain. 2. Calculate the FR premium or discount. Show the formula, do the math until you get the result, and indicate the unit of measurement. Your

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